6. Responsibility

I think of a hero as someone who understands the degree of responsibility that comes with his freedom.

—Bob Dylan

We’ve gotten to the point where everybody’s got a right and nobody’s got a responsibility.

—Newton Minow, former chairman of the FCC

The Buck Stops Here. That was the saying on the plaque on President Harry Truman’s desk in the Oval Office. He referred to it on several occasions to underscore the idea that an American president didn’t have the luxury of passing off accountability for decisions to anyone else. That the expression has survived for over half a century is testament to the importance of the responsibility principle. Needing the reminder is an indication of how difficult it can be to live in alignment with the responsibility principle.

Irresponsibility is nothing new. In biblical lore, the first human excuse followed close on the heels of God’s creation of the species: When God caught Adam eating the forbidden fruit, Adam promptly claimed, “Eve made me do it.” We live in a culture that tolerates a high degree of daily responsibility-dodging, but when it gets to the level of, say, widespread corporate scandals, it’s the failures of responsibility that upset us most. As one example, until the day he died, Enron CEO Ken Lay never admitted that he had any idea former CFO Andrew Fastow was manipulating the accounting ledger. Fast forward to the economic crisis of the late 2000s. As The Wall Street Journal reported in December 2008:

For the U.S. securities industry to unravel as spectacularly as it did in September, many parities had to pull on many threads. Mortgage bankers gave loans to Americans for homes they couldn’t afford. Investment houses packaged these loans into complex instruments whose risk they didn’t always understand. Ratings agencies often gave their seal of approval, investors borrowed heavily to buy, regulators missed the warning signs.¹

Despite this seemingly obvious and widespread irresponsibility on the part of financial services companies, regulators, politicians, and even consumers, no one seems to accept responsibility for the part they played in the worst economic crisis since the Great Depression. No one has admitted that they or their organizations were at fault in any way. And so far, no one has gone to jail. It seems that no one involved in the corporate accounting scandals or the subprime mortgage debacle ever heard about the sign on Truman’s desk. Leaders are responsible. It comes with the job. We can shirk it, and we can make excuses when things get tough, but we do so at our peril. We suffer and so does our business. But as challenging as it may be to accept responsibility, the rewards of accepting responsibly are great. As with every other moral competency, we do it because it’s morally right and then discover that it’s right for our business as well.

Taking Responsibility for Personal Choices

The hallmark of personal responsibility is our willingness to accept that we are accountable for the results of the choices we make. Everything we do follows the law of cause and effect. When we cause something to happen, there is an effect, usually more than one effect. Some of the consequences of our actions are planned; other consequences come as a surprise. Owning personal choice entails that we take responsibility for all consequences of our behavior, both anticipated effects and unintended consequences.

Middle managers frequently struggle with the responsibility competency because they often feel caught between their responsibility for the people they lead and the demands of their senior managers. Frustrated middle managers often complain that they have all the responsibility and none of the authority. That complaint may be code for “I am not really responsible for my actions because my boss made me do it.”

Responsibility is a radical competency because it requires that we accept personal responsibility for everything that we do, even though we each live in a complicated world where bosses, family members, and friends all exert pressure on us to act in certain ways. Responsibility means no excuses, even though none of us is perfect and all of us have good explanations for failing to do what we know is right.

No excuses. Mike Manning (pseudonym) loves golf. Ironically, his passion for golf led him to a moral crossroads early in his career. Mike’s goals at one time were to be successful in business, be a great golfer, and be a good father. Mike was clear about what he needed to do to be successful in his work. He knew what he had to do to become a better golfer—he had to get in a certain number of rounds per week to improve his game. “The trouble is,” Mike said, “I don’t have time to be a good father if I want to do well in business and excel in golf.” Someone suggested he kill two birds with one stone by golfing with his kids. Mike was scornful. “That wouldn’t work at all,” he complained. “It wouldn’t be fun, and it certainly wouldn’t help my game.” But on reflection, Mike came to this realization: “Saying I don’t have time to be a good father makes it sound like it’s not my responsibility, as though time is at fault. Being a good father is a more important goal than being a good golfer. If I want to be a good father, I have to make choices about how I spend my time.” At first, Mike thought he would have to give up golf, and then he realized that the idea about golfing with his kids was a good one. He could enjoy playing golf and let go of the need to aggressively improve his game. Mike admitted responsibility for his choice to put other goals above his desire to be a good parent. Only when he realized that the choice was his could he take steps to be a more responsible father.

Accepting responsibility for personal choice does not mean mindlessly holding to decisions no matter how unproductive they turn out to be. But neither does it mean that we have to be sure we have made the perfect choice. Responsibility is not about making the perfect choice. Instead, it is about making the choice you have made the perfect choice for you. Some leaders make it a priority to find work consistent with their moral compass, even if it involves declining promotions or passing up tempting external job offers. Jim Thomsen, senior vice president of Member Services with Thrivent Financial for Lutherans, says,

What has kept me with this organization is that I can make a difference while honoring my values. I’ve had opportunities to make more money, and I’ve had opportunities that would give me more prestige. But values have played a central role in my decision to work where I work.

Other leaders who have been seduced by jobs, with attractive compensation and perks, come to feel trapped in roles that might not reflect their most deeply held values. They may sense a need for change, but out of a misguided notion of responsibility cling to their current position. “I took this job, so I need to see it through.” A leader who senses he or she is in the wrong job can demonstrate responsibility in one of two ways—help reshape the organization so it is worth remaining or have the courage to make a values-driven career change.

Admitting Mistakes and Failures

Another important aspect of responsibility includes the willingness to take responsibility when things go wrong. Many of us grew up naively assuming that when we turned 21, graduated from college, got married, or got our first job, we would then be perfect finished products. Others have found that career success has enabled them the illusion that they are indeed perfect. The higher you go in an organization, the less likely it is that people around you will give you accurate feedback, so it becomes easy to forget that you are as flawed as the most junior staffer. What’s more, the higher you go in an organization, the easier it is for you to confuse power with perfection. So, the best advice to senior managers is, “Don’t believe your PR.” The more elevated your organizational status, the more important it is for you to actively solicit feedback on your weaknesses.

Even if you know you are not perfect and even if you realize that you make mistakes, it may be frightening to admit it. Some organizational cultures are punitive, and the cost of failure can be high. You may worry about losing a raise, a promotion, or even a job if your mistake is discovered. The irony is that punishing mistakes dampens the risk-taking and experimentation so crucial to sustainable business performance.

If you work in an organization that does not tolerate mistakes, our advice is to get out as soon as you can.

Fortunately, most of us work in organizations that tolerate our mistakes, even if they aren’t happy about them. Even more fortunately, admitting mistakes and failures can enhance our leadership reputation more often than it damages it. Caroline Stockdale, senior vice president and chief talent officer for medical technology company Medtronic, can attest to that. As Caroline recalls:

Earlier in my career, I was two weeks into a new senior job with a company. I’m a bit of a data geek and I started looking under the covers right away to see what was going on. I discovered we had an issue with our own benefits plan for our people. The people working on the program were good people but were inexperienced, and I discovered a major and potentially very expensive mistake. I went to the CEO and shared with him the problem and suggested he had two possible courses of action: one, eat a several million dollar mistake without passing on the cost of the mistake to the employees; two, go back to the employees and tell them you aren’t going to be able to honor the commitment you had given them just a couple weeks before. He knew and I knew that trust is hard to build and easy to break. He chose to eat the expense, and that was the right choice. He kept his promise. He did what was right.

Don MacPherson of Modern Survey can also attest to the positive effects of admitting mistakes. “One time, we had prepared a report for the SVPs of a Fortune 500 company. We made a mistake in some top line data. We inadvertently didn’t include all the survey responses in the results, and it seriously distorted the picture. Of course, we realized that if we didn’t tell them about our mistake, they would have no way of knowing that the report was inaccurate. But we didn’t want them to make decisions based on faulty data, so we never debated whether or not to tell them, only how we should go about it. I called my client contact, let her know the extent of the problem, and shared what I thought we should do to fix the problem. Her reputation was important to her and to us, and it was essential that we take 100% of the responsibility for the error. We redid the report—of course, at no cost—and we submitted a signed memo taking the blame. They are now our best client, and our client contact is the same woman, and she is fiercely loyal to us.”

Admitting personal mistakes helps an organization be healthier in several ways. First, admitting that you have screwed up prevents someone else from being blamed for your mistake. It’s common in organizational hierarchies for junior staff to take the fall for their senior managers, and few things are more demoralizing to employees than unfair criticism. Second, admitting mistakes creates a bond with other employees who feel that you are more approachable by virtue of your admission of fallibility. Finally, admitting mistakes communicates a strong message of tolerance to the organization at large. It says, “We all make mistakes. We know that mistakes and failures are a part of the road to success. We want you to learn from your mistakes, and we hope in the future you will make new mistakes and not repeat old ones.” By admitting mistakes and failures, you can help create a more risk-tolerant climate that leads to innovation and financial success.

Rick Clevette, now corporate vice president, Human Resources at the Carlson Companies, tells a story from his days as an executive in a large Fortune 500 company. One of the firm’s top business heads was a pillar of a leader, long on integrity but a bit short on patience. He had a reputation for being hard on people. The training department had brought in Ken Blanchard of “The One Minute Manager” fame to talk to hundreds of top and mid-level managers. Ken gave his usual entertaining and enlightening stump speech about the importance of looking for opportunities to give employees “one minute” of praise. Not long after, this leader blew up at a junior manager who was making a presentation. The leader soon realized his mistake. He apologized—in writing. He sent a memo to the manager and a copy to the training people, asking them to contact Ken Blanchard about adding another principle to the “One Minute Manager,”—suggesting the need for a “one minute apology.” By apologizing in such a public way, this leader not only admitted his own error, but modeled the value of admitting mistakes to his whole organization.

Admitting mistakes makes sense, not only as a moral imperative, but also as a practical one. Covering up mistakes takes a lot of time and energy and often makes a situation far worse than it need be. Martha Stewart’s conviction and prison sentence is a famous example. Stewart was not convicted of insider trading but of obstructing justice. When the FBI interviewed her in connection with their investigation of insider trading, they concluded she lied about why she had sold her ImClone stock. Had she admitted that she sold her stock when she heard that ImClone’s CEO was dumping his, she would probably never have been charged with a serious crime.

As important as it is to admit mistakes, it is not a “free pass.” It does not absolve you of responsibility for the situation you created or magically undo the harm you may have caused. Though most people would understandably prefer to avoid mistakes that hurt others, there are times when admitting a mistake creates opportunities that would not have existed otherwise. Consider this example of a mistake that transformed a contentious work relationship. Faith Shanley (pseudonym) was a bright, up-and-coming executive who was frequently on the opposite side of issues from her colleague Louis Draper (pseudonym), a seasoned executive who had been with their company since its inception. At a management meeting both attended, Faith decided she needed to make a stand about a proposal she viewed as unethical. She made her point forcefully and, in the process, became sarcastic and confrontational with Louis. Faith felt great after the meeting, proud that she had said something important and confident that her views were well founded. Shortly after, Louis walked into Faith’s office and told her he was upset about what she had done in the meeting. In a flash, Faith realized that she had been so caught up in standing up for what she thought was right, that she was oblivious to the impact of her confrontational style on Louis and the rest of the group. Faith promptly apologized to Louis. She admitted that she should have come to him privately before the meeting to explain her point of view because she knew in advance that there would be a conflict with his ideas. Faith was grateful that Louis came directly to her to discuss her behavior instead of gossiping behind her back. Louis was impressed with Faith’s willingness to admit her mistake. Instead of avoiding each other as they had done in the past, Faith and Louis began to meet regularly on the issues that affected them, and over time, their once-distant relationship became closer and more productive.

Embracing Responsibility for Serving Others

We are all responsible for contributing to the well-being of others. Why is serving others an essential moral competence? Think back to the biological origins of morality. We come into the world programmed to be interdependent. We wouldn’t be around today if our earliest human ancestors hadn’t huddled together to help their fellow tribes people survive. If we do not work to serve others, we fail to act as morally intelligent leaders. Serving others is a great way to show integrity and to encourage others to model it—in other words, to lead by example.

Ken Krei, president of the Wealth Management Group of M&I Bank, is a strong advocate of the principle of responsibility:

We all have personal accountability. At M&I we focus on customers, shareholders, and community. We have responsibility to our employees in terms of their safety and their families. From the shareholders perspective, we have to realize that they expect and deserve a return. And with the community we have to give back to the community’s welfare, to culture and arts, etc. That’s an awesome responsibility and I personally take it seriously. Responsibility is a pretty awesome part of running a successful business. The customer is most important. If we don’t provide good value and products and services we’re not doing the job that will win their loyalty and attract new customers.

When Charlie Zelle bought out his family’s troubled transportation business, much of his motivation was to be of service to his employees and the community. Explaining his distress at the family’s plans to close up shop, he added, “I just felt that some kind of moral boundary was being violated—perhaps it is the idea that you should consider everyone, not just yourself, in any decision.”

Suppose you don’t buy the idea that interdependence is innate. It still makes sense to actively care about the well-being of others. Here’s why: We all value personal happiness. We want to be happy even though we know it is a self-centered motivation. For most of us, the happiness we seek doesn’t happen in a vacuum. Happiness is hard to come by without help from others. Most of us need others to help us be happy.

Gary O’Hagan agrees that service is important, but he thinks that serving others serves himself at least as much. “Every time I’ve done something for others, it’s given me a better feeling about myself. When I help family or friends or even charities, I actually have stopped and asked myself if I’m really serving others or if I’m just being selfish.”

Ignoring the needs of others keeps us from experiencing the genuine pleasure that Gary experienced in helping others. The mentality expressed by the 1990s bumper sticker, “Whoever dies with the most toys wins,” describes fleeting pleasure but not true happiness. For most people, lasting happiness comes from activities that give us a sense of meaning and purpose—such as serving others. Recent studies on longevity have found that serving as a volunteer with some worthwhile organization adds years to our lives (not to mention life to our years).

Accepting responsibility for serving others is also a secret weapon for leaders who want to promote high performance among their workforce. To make their businesses successful, leaders need committed employees. One of the best ways to encourage people to unleash their creative energy in service to their company is for their leaders to serve them. Employees don’t need to be coerced into doing their best work for your organization. People have an inherent and insatiable appetite for personal growth. Left to their own devices, employees will spontaneously contribute to your organization as their way of growing and succeeding in life. That is why leaders don’t need to impose goals from on high. Much of the time and effort companies devote to complicated performance management systems is unnecessary. The most efficient way to elicit strong financial results is for leaders to serve their employees. When we serve our employees, we send them this message:

I know that what you are capable of producing is far greater than what our company needs to succeed. So my opportunity as your leader is to serve you as you do what you want to do, which I already know goes beyond what I need from you. My goal is to serve your needs and help each of you be as successful as you want to be and help you get out of life what you want. If I can help you accomplish what you want to do, then I know our company will do very well. I don’t have to focus on the numbers. I have to focus on you and all our people. Then the numbers will be fine. Because together our people will perform better than our financial targets require. I know that serving you serves the bottom line.

The retention value of servant leadership. Imagine how your employees will respond if you consistently demonstrate that your primary leadership job is to help employees accomplish their own goals. They will stay. Because most businesses yield more value from experienced employees than new recruits, your decision to serve employees will translate into higher levels of knowledge and performance. Because you respect your employees’ goals, they will be highly motivated to give their best efforts to you and your organization.

At Ameriprise Financial, managers are encouraged to spend considerable time helping financial advisors to develop life goals that include business goals and important personal goals. Managers are also expected to find ways to support their advisors as they reach for their goals. This approach has resulted in excellent retention and bottom-line performance. Because the company can keep a high percentage of financial advisors, it generates revenue it would have otherwise lost—while at the same time lowering expenses through reduced turnover costs.

Endnote

1. Susanne Craig, Jeffrey McCracken, Aaron Lucchette, and Kate Kelly, “The Weekend that Wall Street Died—Ties that Long United Strongest Firms Unraveled as Lehman Sank Toward Failure,” Wall Street Journal, December 29, 2008.